Wipro, a key player in the Indian IT sector and a constituent of the NIFTY 50, has recently experienced a notable decline in its stock price. On the latest trading session, Wipro shares dropped by 2.30% to Rs 251.36, amidst growing concerns around its financial performance and investor sentiment. The bearish sentiment surrounding the stock has made investors wary, contributing to the price decrease. According to a Moneycontrol analysis on May 6, 2025, there is a clear sense of negativity surrounding the stock, which has led to this dip.

Wipro's Financial Performance Overview

The financial performance of Wipro over the last few quarters and years provides valuable insights into the reasons behind the stock's underperformance. A detailed review of both quarterly and annual performance highlights key trends and areas of concern.

Quarterly Performance

Here is a breakdown of Wipro's quarterly financial performance:

• March 2024: Revenue stood at Rs 22,208.30 Cr with a net profit of Rs 2,878.40 Cr and EPS of 5.43.

• June 2024: Revenue declined slightly to Rs 21,963.80 Cr, but net profit improved to Rs 3,041.10 Cr, with EPS of 5.75.

• September 2024: Revenue increased marginally to Rs 22,301.60 Cr, with net profit touching Rs 3,226.30 Cr, and an EPS of 6.14.

• December 2024: Revenue remained stable at Rs 22,318.80 Cr, though net profit showed a slight dip to Rs 3,366.20 Cr, with a lower EPS of 3.21.

• March 2025: Revenue slightly increased to Rs 22,504.20 Cr, with net profit reaching Rs 3,559.00 Cr and an EPS of 3.41.

Annual Performance

Looking at the annual performance, the company has seen mixed results over the years:

• 2021: Revenue of Rs 61,934.90 Cr, net profit of Rs 10,855 Cr, and an EPS of 19.11.

• 2022: A significant jump in revenue to Rs 79,312 Cr, net profit at Rs 12,237.70 Cr, with an EPS of 22.37.

• 2023: Revenue reached Rs 90,487.60 Cr, but net profit declined slightly to Rs 11,372.20 Cr, with an EPS of 20.73.

• 2024: Revenue slightly fell to Rs 89,760.30 Cr, with net profit at Rs 11,135.40 Cr and EPS of 20.89.

• 2025: Wipro's revenue has been stable at Rs 89,088.40 Cr, but net profit rose to Rs 13,192.60 Cr, with a notable decrease in EPS to 12.56.

Key Financial Metrics and Ratios

Key financial ratios are essential to understand the broader market sentiment regarding Wipro:

• Basic EPS: A decline in EPS from Rs 22.37 in 2022 to Rs 12.56 in 2025.

• Book Value per Share (BVPS): Decreased significantly from Rs 142.90 in 2024 to Rs 78.65 in 2025, signaling a drop in asset value.

• Dividend/Share: Wipro declared a dividend of Rs 6 per share in 2025, a significant increase compared to Rs 1 per share in previous years, which may help improve investor sentiment in the short term.

• P/E Ratio: The P/E ratio has increased to 20.88 in March 2025, up from 11.49 in March 2024, suggesting that the stock is relatively expensive based on its earnings.

• P/B Ratio: Wipro’s P/B ratio stands at 3.33, indicating that investors are willing to pay more for each unit of book value.

• EV/EBITDA: At 12.72, this ratio indicates how much investors are willing to pay for each unit of operating profit, which has decreased from previous years, suggesting less confidence.

• P/S Ratio: Wipro’s P/S ratio has remained relatively stable at 3.08, indicating that the stock is priced in line with its revenue.

Impact on Stock Performance

The decline in Wipro’s stock price is attributed to a combination of market sentiment and weaker-than-expected financial results. Investor perception has turned negative, as indicated by the stock's inclusion in the bearish sentiment category. While the company continues to generate substantial revenue, its declining profit margins and earnings growth have raised concerns among market participants. Additionally, the relatively high P/E ratio further signals that the stock may be overvalued.

Despite these concerns, Wipro has maintained consistent revenue growth over the years. The company’s ability to generate cash flow, particularly from its dividend payout and cost management strategies, provides some comfort to investors. However, the challenges faced in terms of profitability and the declining book value are critical factors that investors will need to watch closely in the coming quarters.

Conclusion

In conclusion, while Wipro remains a significant player in the Indian IT sector, recent market sentiment and financial performance indicate challenges. The stock’s decline is reflective of a bearish outlook and investor concerns about profitability. It remains to be seen how Wipro navigates these hurdles in the future, especially in terms of improving its earnings growth and shareholder value.

Investors should carefully monitor Wipro’s upcoming financial results and any strategic initiatives to address its declining EPS and profitability. The company’s strong presence in the market and its consistent revenue base might provide some comfort, but addressing investor concerns will be key to turning sentiment around and improving its stock performance in the long term.

The Upcoming IPOs in this week and coming weeks are Integrity Belrise Industries, Accretion Pharmaceuticals, Wagons Learning.

The Current active IPO are Integrity Infrabuild Developers, Virtual Galaxy Infotech.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.